The Desired Objective of the Arab Iron and Steel Industry
This year, the Arab Steel Summit gained special importance, Coinciding with the growing challenges facing the Arab iron and steel industry , The main challenges are the invasion of foreign products for Arab markets Under fierce competition. Which began with the US decision to impose tariffs of 25% on its steel imports in March 2018.
Followed by the taking of many countries in the world protectionist or reprisal measures such as the European Union, which imposed tariffs of 25% on imports of steel, estimated 121 million tons annually, Canada estimated imports of about 6 million tons annually and Turkey, which imposed a protective fee of 25%.
The European Union also announced the introduction of protective tariffs against imports of steel flats.
The same trend was taken by other countries with steel industries, mainly Malaysia, which imposed tariffs between 10% to 13%, Chile 38.9%, Vietnam 9 to 15.4%, Thailand 21%, Indonesia 12% and South Africa 25%. To India imposed tariffs between 6 to 10%.
Therefore, the Arab steel industry must seek to protect its national steel production, Especially that the Arab steel industry is still in the stage of construction and growth, which requires more protection until the cost of steel products in the Arab countries to acceptable levels that can compete with imported products.
At present, some countries have focused on reducing the cost of production, capital expenditures, management and marketing expenses, reducing the number of workers by developing production processes and stopping some high-cost, environmentally polluting production lines to reach an appropriate level of cost for final steel products so that they can compete with steel prices importer.
Some countries have also developed research and development activities to produce high quality and high-value steel varieties and away from traditional steel types, Which the world produces in large quantities worldwide.
It also focused on steel types used in the engineering, automotive, ship building and electrical equipment industries,These types are produced by a limited number of companies worldwide, Which demand volume exceeds the volume of production globally, Making China go to those industries after Japan, the United States, South Korea and the European Union, The Government of China has given incentives to encourage and support exporters of these types of steel products.
We must know that the new rules on which the world economy is moving are no longer given the opportunity for unilateral action It became important to achieve economic and industrial cooperation among the Arab countries, In particular to support the Arab steel industry, which has an investment volume of about $ 100 billion and more than 150,000 direct jobs are the multiples of these numbers of indirect employment.
It became important to achieve integration in covering the needs of Arab markets of various steel products so as to minimize the invasion of foreign products, The Arab steel industry will be able to counter dumping Arab markets with products from abroad.
In the future, it may be necessary to prepare a future study that will be a scientific reference that will take a look at the Arab steel industry until 2030 helping investors make investment decisions and support the Arab steel industry, In addition to maintaining existing investments.
And directing production surpluses to the needs of markets in Arab countries to achieve integration among Arab countries as much as possible ,This is the desired objective of the Arab iron and steel industry.